Capesize (Atlantic and Pacific)
The New Year started with an improvement of rates in Far East as there were BHP and Rio Tinto who were actively fixing during the holiday period and thus time-charter rates for W.Australia rounds were improving. However, within 2 or 3 days, rates started to come down as everybody realized that there was a very big amount of tonnage available in the Far East and in the Atlantic as well. Consequently rates turned down again: minus $ 5,588 on the 4 T/c routes. The Pacific market went down to about $ 11/11.50 for West Aussie to China while there was not much of activity on the Atlantic with very limited cargoes reported fixed on the Brazil/China route (last was reported at $ 33 and then dropping to $ 27.00).
Panamax (Atlantic and Pacific)
A solid week for Panamaxes in both basins with the East underpinned by a good volume of period business. The Atlantic was remaining very strong with rates over 50,000 for trips out, and trans-Atlantic rates were solid, hovering in the upper $30,000 daily range plus higher rates for short rounds. Increased inquiry from the East Coast South America for trips to the East attracted tonnage from the Indian Ocean and Southeast Asia. Very good activity was in long period time charter.
Handy (Far East/Pacific)
Reported fixtures were not able to describe the actual market movement in this area. The Supramaxes were enjoying a better trend compared to the previous weeks, North Pacific rounds had exceeded the $20,000 daily mark. Thus the charterers involved with local inter-Far East trips had to increase their rates quickly to cope with this change. The discontinuous demand had so far assisted them to keep rates low enough although some vessels which were not reported were said to have achieved much better levels. Short period interest remained well alive with charterers who were paying closer to the mid $20,000's level for the better types. Also smaller Handies were said to have benefited from improved rates which were described in the very high demand for tonnage delivering in Southeast Asia to load from Australia back to Singapore-Japan range.
Handy (North Europe/Mediterranean)
The Black Sea showed to lead the week's activity with very fat rates reported for Supramaxes loading cargoes to the Indian Ocean. Rates to Singapore Japan range were described to be similarly firm although all the fixing was managed to be kept confidential. Less business was concluded out of North Europe where rates were staying at still decent levels for owners who managed to fix. But the amount of business available may not be enough to bring satisfaction to the number of vessel's available.
Handy (USA/N.Atlantic/Lakes/S.America)
The slower start of the activity was probably due to charterers trying to hold back as soon the USG market opened and showed its strength with owners fetching very juicy rates both for East Bound and trans-Atlantic business. Short period charter interest was alive enough and the daily rates for large modern Supramax quickly moved from the high 20,000's level to over 30,000. The chartering frenzy was more out of the USG where charterers showed to take tonnage from almost anywhere to the Indian Ocean. Smaller Handies showed to enjoy an even larger benefit from the on-going market trend.
Handy (Indian Ocean/South Africa)
Improved iron ore chartering activity from India to China has generated a daily increase on fixed rates, which has become firm enough to attract owners of tonnage open in the Pacific to take Indian bound business at considerably discounted rates to take advantage of the fat rate available for the afterwards return trip. The interest was more out of the West coast India although it needs to be mentioned that several fixtures concluded failed on subjects as charterers just couldn't manage to meet buyers budget due to the too high time-carter rate they had to agree. Low rates were agreed from the MEG and the South Africa into the USG just because owners believed that the market fixtures can perform better in the near future.
Banchero Costa and Co Spa
Mail: research@bancosta.it
Web: www.bancosta.it